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Happy International Customs Day from JAS USA

The JAS USA Customs Compliance Team Reflects on 2021

Laurie Arnold
January 26, 2022

Happy International Customs Day!  

2021 has been a year with a newfound focus on the international supply chain. With the backlogs in the shipping industry being on the news headlines, suddenly, our industry has become an everyday topic. Many people had never heard of a freight forwarder or a customs broker a year ago and certainly didn't understand what the jobs entailed. Now they have a better idea.  

In addition to the usual challenges customs brokers face, 2021 brought some new issues to the forefront. While these issues have made customs more complex, the team has been able to help customers navigate the many new rules and regulations. Some of these changes included withholding release orders on cotton products from the Uyghur region, the 301 tariff exclusions expiring, GSP not being in place, and several new AD/CVD orders.  

The withhold release orders have presented issues customs brokers have rarely ever dealt with. CBP will issue a WRO on certain goods, and the importer must then be able to prove the imported goods were not sourced from forced labor. This has proved to be both time-consuming and challenging. Most importers have struggled to provide enough proof, leading to their goods being seized or exported. JAS has worked alongside importers to find solutions when they have held their products. Sometimes this involves requesting products not made of cotton be separated from other goods. Other times we were able to assist in exporting products refused entry.

The expiration of the 301 exclusions beginning Jan 1, 2021, meant that importers who had the exclusions were now going to incur an additional 25% in most cases for their products. A cost that importers must now figure out how to pay. Along with this, GSP and MTB are still expired so the duty keeps adding up. As customs brokers, we have worked with many importers to verify their HTS classification.  

How else has JAS helped with these issues? Information is key, and JAS has kept a steady stream of client advisories and monthly newsletters coming. In addition, the JAS Customs Compliance Team has provided reports and training on duty outlays and how to take advantage of the periodic monthly statement duty process. Having the information to plan and determine the next steps is very important to importers.  

One of the priority trade issues from the Department of Commerce is antidumping and countervailing duties. The DOC works to remedy when imported merchandise is sold in the U.S. at an unfairly low or subsidized price to help level the playing field. The team has guided many importers through the many AD/CVD orders that have been issued and helped them determine if their product falls within the scope or not.  

While these changes have been complex, we appreciate our customs compliance teams efforts as they have guided our customers through the new rules and regulations. We are passionate about providing our customers with best-in-class service and are confident that our people make the difference.

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About JAS Indonesia

Established in 2006 in Jakarta, JAS Indonesia has dozens of dedicated and experienced team members to support any of your regional and global transportation needs. The team focuses on air and sea (LCL & FCL), imports, exports, domestic services (air, sea, and inland freight), licensed custom house brokerage, and distribution.

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